Buchanan corp forecasts the following payoffs from a

  • Columbia College
  • FINC 350-A
  • Test Prep
  • MistyR4
  • 7
  • 100% (2) 2 out of 2 people found this document helpful

This preview shows page 2 - 5 out of 7 pages.

Question 50 / 1.5 pointsBuchanan Corp. forecasts the following payoffs from a project:Improving economy $8,000 Probability 20%Normal conditions $5,000 Probability 80%Tight money ($1,500) Probability 20% What is the expected value of the outcomes?Question options:$5,300$4,000The forecast is incorrect and must be modified before finding theexpected value.$5,000
Question 60 / 1.5 pointsWhich of the following combinations of investments would provide the firm with the highest negative correlation?
Question 71.5 / 1.5 pointsYou buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 10 years. What is the internal rate of return?
Question 81.5 / 1.5 pointsAn example of negative correlation may exist between the
Question 91.5 / 1.5 pointsTobin’s Barbeque has a bank loan at 8% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 11%.Question options:7.52%8.25%13.33%None of these options
Question 100 / 1.5 pointsA firm has $50 million in assets and its optimal capital structure is 60% equity. If the firm has $12 million in retained earnings, at what asset level will the firm need to issue additional stock? (Assume no growth in retained earnings.)
Misty Perkins (username: mlperkins4)Attempt 2Written: Feb 15, 2014 1:36 AM - Feb 15, 2014 1:41 AMSubmission View

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture